International Trading Term Paper Example | Topics and Well Written Essays - 1250 words

International Trading - Term Paper Example Peace and stability, interdependence and spread of ideals viable for business expansion are threatened thus reducing the country’s real Gross Domestic product (GDP).Low GDP implies low investments which implies low incomes thus devoting little saving for business expansions. This has devastating macro-economic effects on aggregate demand thus threatening job creation in a country. Trade barriers also reduce benefits accrued to consumers and limits production efficiency due to low competition. Low quality products supplied to the market lowers utility for consumers. Question Two Allowing international trade in Canada will mean it will import bicycles. The reasons are that the imports are cheaper than the exports due to comparative advantage. In a real world situation, black markets situations may result threatening the survival of domestic industries. The producers and manufactures of bicycles in Canada will suffer as rational consumers will obviously go for the cheaper importe d bicycles than their own expensive ones. This will reduce demand for bicycles thus reducing profits. This will later threaten jobs and incomes firms will be earning. In addition, the government will have to suffer economically in importing bicycles, subsidizing them or even meeting the higher cost as a result of inflation. On the other hand, consumers will benefit as they will find imported bicycles cheaper than their own home-made thus benefiting from income and substitution effects. Generally, the loss will be greater than gains due to additional social costs associated inflation, market imperfections and allocative inefficiencies. Question Three Comparative advantage has numerous gains. First, it enables a country to specialise in production of a certain products and services due low cost of factor inputs. It also leads to high quality products and high-knowledge services than their competitors in the market. This leads to an improvement in allocative efficiency and economic wel fare. It also makes a country to gain from international trade skills, knowledge and technology and can set standards in the international markets. It has high chances of creating monopolistic market situations due high costs of production its competitors. This can make it set prices and reap all the supernormal profits. It is noted that there will be production and consumption gains from comparative advantage as consumers will spend less in maximizing their utilities. If a country has an absolute advantage in all goods, first, there will be no trade. This implies that in the long run, trade deficits due to lack of new tastes and preferences. Through trade, all countries will benefit due to comparative advantages. However, in the real world it is difficult to encounter such an ideal economic situation. Question four. Factor prices are unequal because of the following reasons. First, population pressure on land causes the margin of cultivation to be pushed out. As agricultural yield increases, its prices sour higher due to higher manufacturing costs. Second, the differences between a country’s factor inputs, tastes and preferences, could cause a difference in prices of goods and services. For instances, a country’s expenditure patterns might be different from another due to income and factor inequalities. Third, the means of production (state of technology) could have greater magnitudes

PUBLIC RELATIONS Essay Example | Topics and Well Written Essays - 1500 words

PUBLIC RELATIONS - Essay Example It has five branches, namely IWM London, IWM Duxford, IWM North, HNS Belfest and Churchhill War Rooms (IWM 2012 p.1). The organization’s target is to elaborate factors and consequences of war and conflict in an attempt to influence positive change in the world. Four main principles guide the organization. Courage enables them to challenge the current knowledge in the world. It allows them to champion discussions concerning war and conflict. Authoritativeness allows them to question certain fields and establish standards of operations. Relevance ensures the content they portray targets the right persons. The fourth principle is empathy that enables the organization to document experiences and historical facts accurately while respecting opinions and views of participants (IWM 2012 p.1). The ultimate goal of IWP is to become the overall authority in conflicts. Imperial War Museum relies on several sources of funding that include government funding, donations, sponsorship and com mercial ventures. Admissions for audience are free in London and Manchester branch. However the other branches have limited capacity. Therefore, they charge tickets for visitors (IWM 2012 p.1) Analysis of the Museum strategy PESTLE analysis Political evaluation The political environment favors the activities and targets of Imperial War Museum. The museum originated in UK following the First World War that instigated this war. The UK government is on the frontline campaigning alongside IWM. It funds the Museum and supports its activities. There is minimal negative political influence in the Museum because the government supports the museum and participates actively in its plans. However, the museum’s schedule for the 2014 centenary coincides with general elections. In this period, grants are expected to reduce. IWM will feel the impact through 2014-2015(IWM 2012 p.1) Economic influence The Museum requires many funds to run and implement its plans. However, this is not a concer n because the government constantly funds the institution. IMP has projects due for completion in 2014 that require ?35 million. Funds for these projects come from a Heritage Lottery Grant, donations and its commercial operations. In addition, the government offers ? 5 Million for these projects and another ? 50 million for hundred years commemorations since First World War that is due next year, 2014. The government further allocates ? 5.3 million to be distributed among schools to enable students visit the museums and attend the commemorations. Lastly, the museum generates income to fund its activities from its commercial entities. Reports in 2011-2012 indicate that it generates at least 50 per cent of the total funds it needs for operating. According to IWM (2013) however, on the part of visitors, the increasingly difficult economic times will influence household financial decisions eventually undermining attendance to the museum events and commemorations. Social influence Social factors can strengthen an organization or weaken it (Northumbria University, 2008). IWM has sparked interest in the global society. Currently, it records 700 member organizations for the 2014 World War I centenary. According to the museums past records, it has had 1.9 million guests visit their five branches. Upon interviewing the guests, most said they would come attend certain events if